Synergy of green industry with industrial revolution 4.0 in Indonesia

Prasaja, D.; Rini, Monanda Wandita; Yoga, B.D.; Wikansari, R.

doi:10.1201/9780429202629-17

Cited by 1 publication

(1 citation statement)

References 1 publication

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The Green Industry Strategy is broadly defined as a series of corporate strategic policies to create low-carbon products and processes based on green growth and focus [15][16][17]. This strategy is an effort to streamline organizational resources while increasing the value of the company in the eyes of stakeholders.…”

Section: Introductionmentioning

confidence: 99%

Empirical Examination of Green Industry Strategy through ISO-14001 on Firm Value: Mediating Roles of Profitability and Leverage

Helmina¹,

Sutomo²,

Respati³

2022

IJSDP

View full text Add to dashboard Cite

The research aims to analyze the effect of green industry strategy on firm value by leverage and profitability as a moderating variable. Green strategies are widely seen as being able to direct industries and corporations to increase productivity and competitiveness. In addition, this strategy can help the industry promote economic value. In this study, an empirical examination of the green strategy is assessed from the implementation of ISO-14001 as an important consideration in interpreting green practice in industry. Specifically, the variables used to measure it are using eco-efficiency proxies as independent variables with a dummy with ISO-14001, the dependent variable of firm value with Tobin-Q, and using moderating variables of leverage and profitability with Return on Assets (ROA). Using the purposive sampling method on 74 companies and 222 samples listed on the Jakarta Composite Index (JCI) in 2016-2018, the research results underline the important role of eco-efficiency in promoting firm value. This shows that the implementation and proactiveness of management in the green industry through ISO-14001 is an important consideration for investors and stakeholders and ensures the sustainability of the company in the long term. Practically, recommendations need to be made regarding the role of corporations and sectoral industries in dealing with issues of sustainability, environmental pollution, environmental degradation, and deforestation. This paper proposes an empirical innovation in examining how the adoption of environmental standards by companies can be useful for increasing manufacturing company profitability. This study has limitations on the object of research which only examines the manufacturing industry. Therefore, further studies are expected to investigate the role ISO-14001 in other industries with high environmental risks.

show abstract

Section: Introductionmentioning

confidence: 99%